A 12-cylinder heavy-duty diesel engine will have a guaranteed residual value of $1,000 in five years. Today (year 0) the equivalent worth of this engine is how much if the interest rate is 9% per year? Click the icon to view the interest and annuity table for discrete compounding when i = 9% per year. Today (year 0) the equivalent worth of this engine is $ (Round to the nearest cent.)
A 12-cylinder heavy-duty diesel engine will have a guaranteed residual value of $1,000 in five years. Today (year 0) the equivalent worth of this engine is how much if the interest rate is 9% per year? Click the icon to view the interest and annuity table for discrete compounding when i = 9% per year. Today (year 0) the equivalent worth of this engine is $ (Round to the nearest cent.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
Related questions
Question
![A 12-cylinder heavy-duty diesel engine will have a guaranteed residual value of $1,000 in five years. Today (year 0) the
equivalent worth of this engine is how much if the interest rate is 9% per year?
Click the icon to view the interest and annuity table for discrete compounding when i = 9% per year.
Today (year 0) the equivalent worth of this engine is $
(Round to the nearest cent.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe823d0d7-9e80-4a70-b1f3-c40996e6523a%2F8327550e-164a-4be0-9ffa-76a71950376e%2Ftugcolf_processed.png&w=3840&q=75)
Transcribed Image Text:A 12-cylinder heavy-duty diesel engine will have a guaranteed residual value of $1,000 in five years. Today (year 0) the
equivalent worth of this engine is how much if the interest rate is 9% per year?
Click the icon to view the interest and annuity table for discrete compounding when i = 9% per year.
Today (year 0) the equivalent worth of this engine is $
(Round to the nearest cent.)
![N
12340009
5
6
7
8
10
Single Payment
Compound
Amount Present
Factor
To Find F
Given P
FIP
1.0900
1.1881
1.2950
Discrete Compounding; /= 9%
1.4116
1.5386
1.6771
1.8280
1.9926
2.1719
2.3674
Worth Factor
To Find P
Given F
PIF
0.9174
0.8417
0.7722
0.7084
0.6499
0.5963
0.5470
0.5019
0.4604
0.4224
Compound
Amount
Factor
To Find F
Given A
FIA
1.0000
2.0900
3.2781
4.5731
5.9847
7.5233
9.2004
11.0285
13.0210
15.1929
Uniform Series
Present
Worth Factor
To Find P
Given A
PIA
0.9174
1.7591
2.5313
3.2397
3.8897
4.4859
5.0330
5.5348
5.9952
6.4177
Sinking
Fund
Factor
To Find A
Given F
AIF
1.0000
0.4785
0.3051
0.2187
0.1671
0.1329
0.1087
0.0907
0.0768
0.0658
Capital
Recovery
Factor
To Find A
Given P
A/P
1.0900
0.5685
0.3951
0.3087
0.2571
0.2229
0.1987
0.1807
0.1668
0.1558](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe823d0d7-9e80-4a70-b1f3-c40996e6523a%2F8327550e-164a-4be0-9ffa-76a71950376e%2Ffctqmct_processed.png&w=3840&q=75)
Transcribed Image Text:N
12340009
5
6
7
8
10
Single Payment
Compound
Amount Present
Factor
To Find F
Given P
FIP
1.0900
1.1881
1.2950
Discrete Compounding; /= 9%
1.4116
1.5386
1.6771
1.8280
1.9926
2.1719
2.3674
Worth Factor
To Find P
Given F
PIF
0.9174
0.8417
0.7722
0.7084
0.6499
0.5963
0.5470
0.5019
0.4604
0.4224
Compound
Amount
Factor
To Find F
Given A
FIA
1.0000
2.0900
3.2781
4.5731
5.9847
7.5233
9.2004
11.0285
13.0210
15.1929
Uniform Series
Present
Worth Factor
To Find P
Given A
PIA
0.9174
1.7591
2.5313
3.2397
3.8897
4.4859
5.0330
5.5348
5.9952
6.4177
Sinking
Fund
Factor
To Find A
Given F
AIF
1.0000
0.4785
0.3051
0.2187
0.1671
0.1329
0.1087
0.0907
0.0768
0.0658
Capital
Recovery
Factor
To Find A
Given P
A/P
1.0900
0.5685
0.3951
0.3087
0.2571
0.2229
0.1987
0.1807
0.1668
0.1558
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